Shares of several Indian broadband providers plunged on Thursday after oil-to-retail conglomerate Reliance Industries Limited unveiled ‘JioGigaFiber,’ its fibre-to-the-home (FTTH) high-speed broadband service.
Shares of DEN Networks Ltd, Hathway Cable and Datacom Ltd witnessed a fall between 11 to 18 per cent after the announcement.
At 12.25 pm, about half an hour after the announcement, the stock price of Mumbai-based Hathway Cable’s saw an 18 per cent fall and it later hit its lowest in over six-and-a-half years. On the other hand, DEN Networks at one point was trading down by 11.4 per cent at Rs 66.8 – its lowest since January.
After its Annual General Meeting, RIL stocks were also down 2 per cent. It had gained 1.5 per cent ahead of the AGM.
JioGigaFiber aims to be an all-in-one solution that takes care of broadband, home devices, video conferencing, virtual gaming and Internet television (IPTV), digital shopping and more.
In its trials, JioGigaFiber entitled its users to 100 GB monthly data for three months at a speed of 100 Mbps. However, customers have to pay Rs 4,500 as a one-time security deposit to avail of the offer.
The widely popular Reliance’s telecom arm, Jio, infiltrated the highly-competitive telecom market in late 2016 with free-voice and cut-price data plans, forcing rivals to lower their margins in order to match Jio’s tariffs.